TSX Ends Lower On On Ukraine, China Worries -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Friday, tracking declining global markets led by financial and industrial stocks amid concerns over the crisis in Ukraine and China economic growth worries, with some soft consumer sentiment data out of the U.S.

Economic growth in China continued to worry investors with some soft retail and output data, suggesting weakness in the second largest economy in the world.

Investors also worried over the upcoming referendum on Sunday in the Crimean region of Ukraine to decide on merging with Russia. Ukraine's prime minister said today that Russian-speaking Crimea will almost certainly vote to join Russia. The regional parliament of Crimea has already voted unanimously to become part of Russia.

Meanwhile, the talks between U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov held in London failed to find common ground in resolving the ongoing crisis in Ukraine. Kerry indicated some severe sanctions would be imposed on Russia should the controversial referendum takes place in Crimea. The Russians, meanwhile, conducted military exercises along its border with Ukraine.

Asian markets ended mostly lower, weighed down by concerns about a slowdown in China and on worries about Ukraine. In Europe, most markets ended in negative territory.

The S&P/TSX Composite Index closed Friday at 14,227.66, down 17.48 points or 0.12 percent. The index scaled an intraday high of 14,276.85 and a low of 14,205.73.

Yesterday, S&P/TSX Composite Index ended down 73.86 points or 0.52 percent at 14,245.14, due mainly on worries about the state of the Chinese economy.

The Global Gold Index gained 0.99 percent, with gold futures for April delivery, the most actively traded contract, gaining $6.60 or 0.5 percent to close at $1,379.00 an ounce Friday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) slipped 0.52 percent, while Barrick Gold Corp. (ABX.TO) gained 0.91 percent. Detour Gold Corp. (DGC.TO) advanced 1.93 percent, while Goldcorp Inc. (G.TO) moved up0.60 percent.

B2Gold Corp. (BTO.TO) slipped 3.38 percent after the company reported that its fourth-quarter adjusted net income for the quarter rose to $3.7 million or $0.01 per share, from $18 million or $0.05 per share last year.

The Capped Materials Index added 0.43 percent, even as Potash Corp. of Saskatchewan Inc. (POT.TO) inched up 0.03 percent.

Crude oil ended higher amid uncertainty over the upcoming referendum in the Crimea region of Ukraine for a vote to break away and join Russia, which could impact oil supplies from Russia.

The Energy Index edged up 0.17 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, adding $0.69 or 0.7 percent to close at $98.89 a barrel Friday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) edged down 0.03 percent, while Enbridge Inc. (ENB.TO) gained 0.57 percent. Canadian Natural Resources Ltd. (CNQ.TO) added 0.79 percent, while Encana Corp. (ECA.TO) added 1.13 percent.

Athabasca Oil Corp.'s (ATH.TO) slipped 0.60 percent after announcing that its chairman and founder William Gallacher is stepping down, to be replaced by board member Thomas Buchanan.

The heavyweight Financial Index dropped 0.63 percent with the Toronto-Dominion Bank (TD.TO) dropping 0.47 percent, Bank of Nova Scotia (BNS.TO) down 0.40 percent, and Royal Bank of Canada (RY.TO) down 0.89 percent.

The Diversified Metals & Mining Index shed 0.06 percent, with Teck Resources Limited (TCK.B.TO) gaining 0.70 percent, Lundin Mining Corp. (LUN.TO) down 0.41 percent, and First Quantum Minerals (FM.TO) down 0.37 percent.

The Information Technology Index dropped 0.13 percent, with BlackBerry Limited (BB.TO) gaining 3.30 percent.

The Capped Industrials Index slipped 0.56 percent, although Bombardier Inc. (BBD.B.TO) gathered 1.29 percent.

McCoy Corporation (MCB.TO) gained 1.74 percent after reporting adjusted earnings of $2.3 million for the three months ended December 31, 2013, down 54 percent from the comparative quarter in 2012.

Stella-Jones Inc. (SJ.TO) gained 2.07 percent revealing its net income rose 19 percent to $19.7 million or $0.29 per share for the fourth quarter, compared with $16.5 million or $0.25 per share last year.

In economic news, a Thomson Reuters and the University of Michigan report on Friday showed an unexpected deterioration in U.S. consumer sentiment in March, with expectations for future growth taking a hit. A preliminary reading of the consumer sentiment index for March came in at 79.9 compared to the final February reading of 81.6. Economists expected the index to inch up to a reading of 81.8.

The unexpected decrease by the headline index came as the gauge of consumer expectations fell to 69.4 in March from 72.7 in February. At the same time, the report showed that the barometer of current economic conditions climbed to 96.1 in March from 95.4 in the previous month.

Meanwhile, a Labor Department report on Friday showed producer prices in the U.S. showed a modest decrease in February. The producer price index for final demand dropped by 0.1 percent in February after rising by 0.2 percent in January. Economists expected prices to creep up by another 0.2 percent.

From Europe, visible trade deficit in the U.K. widened more-than-expected in January as a strengthening pound weighed on exports, while oil and aircraft lifted imports. U.K.'s visible trade shortfall increased to GBP 9.8 billion, the highest since September, from GBP 7.7 billion in December, data from the Office for National Statistics showed Friday. The deficit was expected to rise to GBP 8.6 billion.

Construction output in the United Kingdom increased a seasonally adjusted 1.8 percent in January, driven by an increase in repair and maintenance, the Office for National Statistics said Friday.